The artist has donated the complete sum of his £25k honor cash to the trust for venues, which functions to protect the Britain's small live music spots.
The star was awarded the prize on mid-October as his third album the album was declared the top album of the previous year.
The musician has opted to give the cash to the MVT, in appreciation of the essential function local spots played in his early career.
"As an artist would not have achieved what I am doing today if it wasn't for all the performances I performed around the North East, and elsewhere, when I was starting out," said Fender. "These locations are legendary, but they are struggling."
Since the start of 2023, over 150 of these spaces have shut down – about one-sixth of the entire UK sector.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket costs, which benefits independent venues.
He also joined in, raising over £100k on his 2024 arena tour to support numerous grassroots venues across England, Scotland, and Wales.
The money supported spaces that were confronting potential shutdown due to issues arising from water damage, blazes and personal losses, as well as permit problems, legal disputes and sound issues.
Other venues obtained monetary aid in upgrading infrastructure and technical equipment that positively impacted artists and concertgoers.
"The concept that money from shows in major spaces backs the local stages, where it all starts for performers like me, is just common sense," Sam Fender has commented.
Fender is not the first artist to donate his Mercury Prize winnings to worthy causes.
When Pulp received the prize in the mid-90s for their album the album, vocalist Cocker declared that the group would contribute their winnings to the organization War Child.
In 2002, musician Ms Dynamite split her award between several charities, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was younger and they needed better apparatus," the artist explained to a publication.
Two years ago, they gave their prize money to the local youth club that supported their act, as well as other local music groups.
Also winners that year M People gave their winnings to a MS organization after a close contact was found to have the illness.
"Receiving the award was ample," stated singer the singer. "The money was the extra but we didn't need the cherry, because we had the honor. So our victory impacted somebody else's life."
Last week, the MVT revealed it had protected two grassroots venues in south-east England, by transferring them to community ownership.
The first in the city and the other in the city were acquired under the community ownership initiative, which is supported by a national body and enthusiasts who purchase "ownership units" in the properties.
